Stosch Company's Balance Sheet Reported Assets of $67,000, Liabilities of $20,000

Multiple Choice

Stosch Company's balance sheet reported assets of $67,000, liabilities of $20,000 and common stock of $17,000 as of December 31, Year 1. Retained earnings on the December 31, Year 2 balance sheet is $38,000 and Stosch paid a $19,000 dividend during Year 2. What is the amount of net income for Year 2?

A) $30,000
B) $27,000
C) $8,000
D) $19,000